Fathom’s Japan Economic Sentiment Indicator (ESI) rebounded to 4.1% in Q3, up from 3.9% in the previous quarter. The increase was driven by the industrial sector, with the manufacturing Tankan and manufacturing production surveys up on the quarter. However, several corporate sector surveys fell again in September, leading to a slight softening of the ESI for that month. Concerns about slowing economic activity in China, Japan’s biggest export market, and trade renegotiations with the US following threats of auto tariffs suggest that external demand will continue to contribute little to Japanese economic growth, despite a weaker yen. With retail sales

In the past, when efforts to rebalance have triggered a slowdown, China has thrown in the towel, opting to support economic growth while exacerbating domestic and global imbalances. This time is no different. Indeed, as we demonstrated to clients in a more detailed note, as long as near-term growth remains China’s priority, we should expect to see this flip-flopping in economic policy time and time again. Refresh the chart in your browser | Edit chart in Datastream With the Fathom measure of China’s economic activity (our China Momentum Indicator 2.0) pointing to a slowing of growth amid escalating trade tensions, we informed

Saudi Arabia’s new advisory council could unravel quicker than Donald Trump’s. The U.S. president’s strategic and manufacturing panels, stocked with chief executives from companies like Blackstone, 3M, General Electric and Merck, lasted six months before being wound up in August 2017. Saudi Crown Prince Mohammed bin Salman’s 18-member group of foreign experts, brought in to advise on new super-city NEOM, may have an even shorter shelf life.Advising presidents and princes – or both in the case of ex-Uber boss Travis Kalanick – has two benefits. It flatters the ego of the bigwig who’s asked by serving as a kind of

Leveraged Loan Monthly – September 2018 The September 2018 edition of LPC’s Leveraged Loan Monthly is now available for download on LoanConnector & LC Reports. Contents: Leveraged Loan Market Overview US High Yield Bond Market Overview Investor Overview and Fund Flows CLO Market Analysis CLO League Tables List of Recent CLOs Primary Market: Leveraged loan activity declined in the third quarter, registering $177 billion of volume, a decline of 40% compared to 3Q17’s record pace of volume. YTD leveraged issuance is tracking at $930 billion, which is 12% lower relative to last year. The institutional share of leveraged issuance has